Electricity Commercial Code
Electricity Commercial Code
Electricity Commercial Code
Working with industry to shape the future of electricity code management
Two electricity codes are becoming one, and we’re taking part in the assessment to become the future Code Manager. Find out what’s changing, what it means for the industry, and how you can get involved.
What is the Electricity Commercial Code (ECC)?
Ofgem plans to bring together two existing electricity codes into a single Electricity Commercial Code (ECC):
- Distribution Connection and Use of System Agreement (DCUSA)
- Connection and Use of System Code (CUSC)
The aim is to create a single, more streamlined governance framework, making the rules easier to find, understand and follow.
Ofgem is leading this work as part of Phase 2 of its Code Reform programme.
Why is RECCo involved?
In June 2026, Ofgem invited RECCo to take part in the licensing assessment for the future ECC Code Manager role. Following Ofgem’s decision to use a non-competitive selection process, RECCo is the only eligible candidate taking part. Submission of the assessment material is due by 1 September 2026.
Being part of the assessment does not mean RECCo has been appointed as the future Code Manager. The assessment requires us to demonstrate to Ofgem how we could operate in line with the code manager licence conditions. This includes developing proposals covering:
- governance and accountability
- future operating model
- required skills and capabilities
- funding and cost allocation
- transition to become the code manager
Ofgem will assess our submission before deciding whether to propose granting RECCo the ECC Code Manager licence. There will be an opportunity for the industry to provide representations to Ofgem’s decision.
What changes now?
Nothing is changing at this stage. If you’re a party to CUSC or DCUSA, your obligations, modification processes, panels, code bodies and day-to-day contacts remain unchanged throughout the licensing assessment. Any future changes will only take place if Ofgem decides to grant the ECC Code Manager licence and the new arrangements are implemented.
We’ll work closely with the existing code bodies, the Panels and Ofgem to make the transition as smooth as possible, and give industry clear information about what is changing, when changes will happen, how organisations will be affected, and what they need to do to prepare. We’re committed to keeping stakeholders informed throughout the process and welcome questions, feedback and constructive challenge as the future model is developed.
How we're developing our proposal
We have relevant experience in code governance, stakeholder engagement, service management and managing change across complex market arrangements.
However, the ECC is not the REC. CUSC and DCUSA have their own histories, stakeholders and operating arrangements. Much of the knowledge needed to design the future model already sits within the CUSC and DCUSA communities.
That’s why we’re developing our proposal, building on the expertise that already exists across the CUSC and DCUSA communities to understand what works well today, identify opportunities for improvement, and develop a practical future operating model.
Where we are in the journey
Selection
January 2026 - June 2026
Expressions of interest invited
RECCo selected on 1 June for the next phase
Licensing assessment
June 2026 - September 2026
Developing our proposal, which will be submitted on 1 September
Ofgem review
September 2026 - October 2026
Ofgem completes its assessment, issues notice of proposed licence grant, industry representations
Implementation and assurance
From November 2026
If Ofgem confirms its proposal to grant RECCo the licence, the transition begins for go-live, likely early 2028
We’re at the licensing assessment stage right now. The above dates are a guide. We’ll keep you updated as plans are confirmed.
Wider code reform
The licensing assessment is only one part of Ofgem’s wider programme of code reform. Alongside the assessment, Ofgem is leading several related workstreams that will shape how the future ECC operates.
- Bringing the codes together. Ofgem is leading the initial consolidation of CUSC and DCUSA. This includes common governance areas such as defined terms, modifications, compliance, credit cover, disputes and derogations. Further consolidation and simplification would follow under the future code manager once the licence is granted.
- Changing the wider framework. Existing licences, codes and contracts will need consequential changes. Ofgem plans to lead this work with support from industry.
- Developing the funding model. The funding arrangements for the future Code Manager are still to be developed. Ensuring that costs are allocated fairly and transparently will be an important part of the future model.
This work does not redesign the existing commercial arrangements. The detailed design and transition approach would be developed during the next phase with Ofgem, the current code bodies, the panels and the wider industry.
Our commitment
Throughout the assessment, we will work to ensure that we:
- continue to deliver the REC effectively
- meet our existing code and licence obligations
- ensure REC Parties are not disadvantaged by our participation
- support the continued operation of CUSC and DCUSA
- work constructively with current CUSC and DCUSA bodies and panels
- keep REC and ECC governance, funding and accountability appropriately separated
- communicate openly about our proposals and progress
- develop a future model that supports effective, proportionate and independent code governance
What's coming up
Get involved in future engagement and help shape our proposed approach.
Who should be involved?
We want to hear from anyone who is a party to CUSC or DCUSA, or who works with the electricity commercial code arrangements. This includes:
- Distribution Network Operators and Independent Distribution Network Operators.
- Transmission Owners and NESO.
- Energy Suppliers of all sizes.
- Generators and storage operators
- Aggregators and flexibility providers.
- Connection customers and developers.
- Existing code bodies and service providers.
- Trade associations and consultants
- Organisations working with these codes on behalf of others.
Planned engagement
We’ll work with:
- The organisations responsible for managing the REC, CUSC and DCUSA
- CUSC and DCUSA Panel members
- Industry associations and representative bodies
- Individual code parties and stakeholders
- Smaller and newer market participants that may not be represented through existing forums.
We will also hold an industry webinar to explain our proposed approach, answer questions and hear stakeholder views. Details will be published shortly.
Any questions?
Got a question or suggestion? We’d love to hear from you.
